UBS is facing mounting pressure to reconsider its Swiss headquarters, as activist investor Cevian Capital and other stakeholders warn that proposed capital reforms could make it “not viable” for the bank to remain in the country.

The Swiss government’s plans, announced in June, would require UBS to fully capitalise its foreign subsidiaries, with estimates suggesting the bank could be forced to hold as much as $26 billion in additional reserves.

Lars Förberg, co-founder of Cevian Capital, which owns 1.4 per cent of UBS, stated, “The board has the responsibility to ensure that UBS protects its competitiveness. Under the current proposals, it is not viable to run a big international bank from Switzerland. We therefore see no other realistic option but to leave.”

Förberg added, “The message from the Federal Council is clear: UBS is too big for Switzerland . . . I respect the Federal Council’s decision, but I do not understand it. It cannot be undone. Lobbyists cannot change that either. That effort can be spared.”

UBS has publicly criticised the proposed capital rules, arguing that they diverge from global standards and could undermine the bank’s competitiveness without enhancing financial stability. The bank’s chief executive officer, Sergio Ermotti, commented last week, “We want to continue to operate as a successful global bank based out of Switzerland,” but noted it was “too early” to comment on how UBS might respond to the reforms.

The prospect of relocation has prompted UBS to hold preliminary discussions with United States officials, exploring the possibility of moving its headquarters to a jurisdiction with a more flexible regulatory environment. While UBS maintains that its preference is to remain in Switzerland, the bank is actively considering contingency plans should the capital rules proceed as drafted.

Other investors have echoed Cevian’s concerns. A top 25 Swiss investor in UBS told the Financial Times that the lender should seriously explore moving its headquarters, while a senior executive at another Swiss bank said the Swiss government should take the threat seriously.

If UBS were to relocate, the United States or an EU member state are seen as likely destinations, given their legal and regulatory frameworks. However, analysts caution that such a move would be complex and could serve as a negotiating tactic in ongoing discussions with Swiss lawmakers.

The debate over UBS’s future highlights the tension between national regulatory ambitions and the realities of global banking. As Switzerland weighs its next steps, the outcome could have far-reaching implications for the country’s financial sector and its standing in international markets.

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